I remember the exact moment it hit me. The bills stacked up on my kitchen table, my bank account barely holding on, and my stomach in knots. It felt like I was drowning—like no matter how hard I worked, I’d never break free from the cycle of debt. The worst part? I wasn’t even being reckless. I had a stable job, but that paycheck disappeared the second it hit my account.
Rent, student loans, credit cards—it all felt impossible. That’s when I realized I needed to create Multiple Streams of Income if I ever wanted to get ahead. Relying on one paycheck wasn’t cutting it—I had to find ways to bring in extra cash and take control of my financial future.
Then, one night, staring at my laptop, I asked myself: Is this it? Is this my life? I refused to believe that. So, I did something crazy—I started looking into multiple streams of income. Not the “get rich quick” nonsense, but real, sustainable ways to bring in extra cash. And let me tell you—it wasn’t pretty at first. But it changed everything.
This is the first blog in our Multiple Income Series. Next up, we’ll tackle a big challenge: filing taxes when you have multiple sources of income (because trust me, that’s a whole other beast). But first, let’s talk about how to manage debt while growing your income.
Read More: Estate Planning Costs: What You Need to Know Before You Start [Estate Planning Series]
The Reality of Balancing Debt While Growing Income
Debt can feel suffocating, but here’s the truth: waiting until you’re debt-free to start making extra money is a mistake. You need to work on both—paying down debt while increasing your income. That’s how you break free.
I won’t sugarcoat it—juggling multiple income streams while tackling debt is a rollercoaster. Some months you feel like you’re making progress; other months, an unexpected car repair wipes out your entire side hustle income. But that’s the game, and the people who win stay in the game.
My First (Terrible) Side Hustle Attempt
Let me tell you about my first attempt at making extra cash. I had this brilliant idea—I’d sell custom T-shirts online. Easy, right? Wrong.
I spent a weekend designing shirts, spent even more money getting them printed, and then… crickets. I sold a grand total of three shirts, one of which was to my mom (thanks, Mom). I lost money, and I felt like a failure.
But that’s when I realized something: success isn’t about getting it right the first time. It’s about trying, learning, and adjusting. The T-shirt business flopped, but it taught me something critical—I needed an income stream that didn’t require upfront money.
Managing Multiple Streams of Income While Tackling Debt
So, after the T-shirt fiasco, I tried something different. I started freelance writing—no inventory, no overhead, just me and my laptop. And guess what? It worked. I landed a few small gigs, made some extra cash, and realized: this is how I dig myself out.
Juggling multiple income streams while handling debt takes strategy. Without a plan, you could end up burned out—or worse, broke. So how do you stay ahead?
1. Prioritize High-Interest Debt First
My credit card interest was 22.8%—which meant that even though I was making extra money, I was basically just handing it over to the bank. That’s when I learned about the debt avalanche method—where you attack the highest-interest debt first.
Game changer. I threw every extra dollar I made at my credit card bill, and for the first time, I saw progress.
2. Assign Each Income Stream a Specific Purpose
Once I had multiple streams of income, I needed to control where that money went. So, I set rules:
- Main job? Covered rent and essentials.
- Side hustle? 100% went to my debt.
- Freelance gigs? Savings for emergencies.
This system saved me from spending my extra money on stupid things (looking at you, late-night Amazon shopping).
3. Automate Payments for Stability
When my income started fluctuating, I ran into a new problem—some months, I’d make a ton, and others, I’d barely scrape by. So, I automated my minimum debt payments to make sure I never missed one. And during high-income months? I threw in extra.
Strategies to Use Extra Income for Debt Repayment
Making extra money is great—but if you don’t use it right, you’ll stay stuck in the same cycle. Here’s how you maximize every dollar and get out of debt faster.
1. The 70/30 Rule: Your Debt Repayment Accelerator
Listen, most people make extra cash and blow it. That’s why they stay broke. Not you. You’re going to use the 70/30 rule—a simple but powerful strategy:
- 70% of your extra income? Goes straight to debt. Kill it. Knock it down. Don’t let it grow.
- 30%? This goes to savings and investments—because being debt-free is great, but having money working for you is even better.
Follow this, and you’ll see real results, fast.
2. Reinvest in Income Streams That Make You More Money
Some of your income sources are one-hit wonders, but others? Gold mines. If something is making you serious cash, double down on it.
- Upgrade your tools – A better laptop, software, or camera could mean more clients, better quality, and higher rates.
- Invest in marketing – If a few bucks in ads gets you more customers, why wouldn’t you do it?
- Develop new skills – Certifications, online courses—whatever makes you more valuable in the market.
This isn’t about spending—it’s about multiplying your income so you can wipe out debt even faster.
Conclusion: The Next Challenge—Taxes!
Alright, you’ve got the game plan. Make more money. Pay off debt faster. Build financial security. But hold on—there’s a new problem on the horizon. The more money you make, the more complicated things get. And let me tell you, the IRS? They don’t play games.
If you’re juggling multiple income streams, tax season can be a nightmare. You need to know what to report, what to deduct, and how to avoid overpaying.
So, in the next blog, we’re tackling:
- How to report multiple income streams on your taxes (without pulling your hair out).
- The secret to maximizing deductions and keeping more of your hard-earned cash.
- What you need to know about self-employment taxes (before they drain your wallet).
If you’re serious about keeping more of what you make, you cannot afford to miss this. Stay tuned—it’s about to get real.
